Ant Financial, the payment affiliate of Alibaba Group, has officially launched a brand new housing rental service. More than one million apartments are now available on Alipay in Shanghai, Beijing, Shenzhen, Hangzhou, Nanjing, Chengdu, Xi'an and Zhengzhou. The rental service relying on Alipay’s consumer credit system will help prevent fraudulent deals and offer customers with good credit an exemption of deposit.
Currently, only 12% of the Chinese people live in rental homes, the ratio is far below that of US, UK, and Japan. From the investment perspective, the rental housing market is so under-developed that the rental return rate is at the bottom among the international metropolis
To promote the development of China's housing rental market, the government has formulated long-term strategies to meet residents' increasing house rental demands driven by the rocketing housing sales price. Recently, many cities have started to implement policies encouraging supplies of rental units.
The government's favorable policies plus the strong consumer demand will usher Chinese rental market into a new high growth era. The market size will rapidly grow in the next few years, thus attracts technology companies like Alibaba, JD, and China UnionPay to participate in this new wave of industry development.